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Estimate gratuity from monthly basic salary, dearness allowance, and years of service.
Tax year 2026 - Updated June 2026
Estimated gratuity
₹1,55,769
Years used
6 years
Monthly equivalent
₹12,981
| Monthly salary for gratuity | ₹45,000 |
| Completed years entered | 5 |
| Extra months entered | 7 |
| Years used in formula | 6 |
| Estimated gratuity | ₹1,55,769 |
Quick answers
How is gratuity calculated in India?
A common covered-employee formula is basic plus DA multiplied by 15 divided by 26, then multiplied by completed years of service.
Is gratuity part of monthly in-hand salary?
No. Gratuity may be included in CTC, but it is usually not paid monthly. It is normally payable when eligibility and service conditions are met.
When is an employee eligible for gratuity?
Gratuity eligibility often depends on continuous service and applicable rules. Many cases use five years as a common threshold, but final eligibility should be checked with HR or a professional.
Does the calculator round service years?
The calculator can round service according to the assumptions shown, such as rounding up when extra service exceeds six months.
Does gratuity calculation include bonus or HRA?
The standard estimate uses basic salary and dearness allowance where applicable. Bonus, HRA, special allowance, and reimbursements are usually not part of this formula.
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